A new digital world order

Category: Philosophy of Economics
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The probability of ruin of unhedged stock market investments is always greater than zero. This implies that in a sufficiently long interval of time, any unhedged investment in the stock market will be ruined. Therefore, unhedged investments in stocks are motivated by greed and wishful thinking as investors hope that that will sell for profit before the uncle point. Recent history proves this is not the case.

There is a new government in Greece that is trying to negotiate a reduction of Greek debt. This effort by the leftist government is based on the realization that the Greek debt is not sustainable. In this blog I examine some of the causes of Greek debt. If the causes of the debt are not removed, the same problems will emerge in the future, even after reduction.

Should scientific theories be falsifiable? Many insist that they must be. Others argue that theories are useful even when they are not falsifiable. In a recent blog, Noah Smith argues that if theories make no claims about the physical world, then it should not matter.

Recently there have been attempts by authors of mainly social science textbooks to retrofit theories that failed to predict the 2007 financial crisis with auxiliary hypotheses that allow them to deal with such events. This may amount to scientific fraud.